P2P Lending Returns Calculator
Calculate expected returns from peer-to-peer lending after accounting for defaults.
Net return
₹7,800
Net annualized return
7.8%
Gross interest
₹12,000
Expected default loss
₹3,000
At a 12% gross rate with an assumed 3% default rate and 10% platform fee, your net return is ₹7,800 — an effective 7.8% annualized return, well below the advertised rate.
How this calculator works
P2P lending returns depend on three factors: the gross interest rate borrowers pay, the platform's fee on that interest, and the portion of principal lost to borrower defaults — netting all three gives a realistic picture of your actual return.
Worked example: lending ₹1,00,000 at a 12% gross rate for 1 year earns ₹12,000 in gross interest; after a 10% platform fee (₹1,200) and an assumed 3% default rate (₹3,000 of principal lost), your net return is ₹7,800 — an effective annualized return of 7.8%, notably below the advertised 12%.